Tokyo futures hit 1-week high, upside capped
BANGKOK: Tokyo rubber futures rose to a one-week high on Wednesday on the back of steady oil prices and speculative buying, but gains were limited by concerns about the global economy, dealers said.
The benchmark rubber contract on the Tokyo Commodity Exchange for January delivery rose 3.7 yen to settle at 361.4 yen ($4.724) per kg.
It rose as much as 2 percent to an intraday high of 364.5 yen per kg, the highest since Aug. 17.
The most active Shanghai rubber contract for January delivery was down 15 yuan to finish at 33,105 yuan ($5,175) per tonne.
"Actually TOCOM sentiment was not bad, but the rises were limited by concerns about a possible global economic downturn and I thinks these concerns could last long," one dealer said.
Brent crude prices steadied above $109 on Wednesday as investors pinned their hopes on the US Federal Reserve to inject fresh stimulus to boost the world's largest economy.
Dealers said TOCOM prices were expected to rise further after prices finished above key psychological resistance of 360 yen.
Copyright Reuters, 2011
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